It’s a tough question, but Manufacturing Digital tries to crack it in the article “Inventory Control: Getting Lean, Mean & Effective”, which appears in its July issue. http://www.manufacturingdigital.com/
Inventory - whether it’s raw materials in the warehouse, parts at the lineside, work in process (WIP), or finished goods - is cash tied up in the business. In excess it can halt business cash flow, occupy valuable space and impede flow around the factory.
“Moreover, as soon as goods are delivered into a company they start to consume resources with storage, heating or chilling, lighting and administration, incurring cost,” explained Craig Dunn, lean operations manager at Willerby Holiday Homes. Eventually, idle inventory runs the risk of becoming obsolete, either as it reaches the end of its shelf life or as product design moves on.
Finding the optimum level of inventory is therefore vital. “Too much inventory certainly impacts the health of an organization,”
Read the full article at Manufacturing Digital. http://www.manufacturingdigital.com/
# # #
About Manufacturing Digital
Manufacturing Digital is a leading digital media source of news and content for C-level executives in the manufacturing industry worldwide. Manufacturing Digital is the industry-dedicated arm of the White Digital Media Group. Founded in 2007 by entrepreneur Glen White, White Digital Media retains a diversified portfolio of websites, magazines, daily news feeds and weekly e-newsletters that leverage technology to innovatively deliver high-quality content, analytical data, and industry news.
Manufacturing Digital and White Digital Media are headquartered in Norwich, UK, with additional offices in Boston, Toronto, Mumbai, and San Diego, USA. For more information, contact +44 01603 217530 or visit www.manufacturingdigital.com